Internet cafe customers brace for gambling shutdown

Governor expected to sign bill into law by April 12

Wilson Glass, 71, a veteran, talks about his future Friday if Internet cafes are closed as he plays at the Disabled American Veterans' Arcade located on Eighth Street in Holly Hill. The gaming machines help raise money to pay for volunteer programs that include driving ill veterans to doctor appointments.

News-Journal/Jim Tiller

RAY WEISSSTAFF WRITER

Published: Friday, April 5, 2013 at 5:08 p.m.

Last Modified: Monday, April 8, 2013 at 6:26 p.m.

Wilson Glass is a gambling man, but he knows a losing bet when he sees one.

That's why Glass, who served on the Korean Demilitarized Zone from 1959 to 1961, anticipates his time is very short playing electronic slot machines inside an arcade at the Disabled American Veterans chapter in Holly Hill.

Gov. Rick Scott is expected to sign a bill into law within the next few days that bans so-called Internet sweepstakes cafes, following the lead of the Legislature. The law also will impact local veterans posts like the one in Holly Hill where gaming machines help raise money to pay for volunteer programs that include driving ill veterans to doctor appointments.

"This is not a storefront cafe. A private club like this should be left alone if it's a legitimate thing," Glass said. "It's not all about gambling here. I might win or lose a little money. But even if I lose, it helps vets."

Still, Glass said he is realistic about the fate of the DAV arcade he visits a couple of times a week.

"I think the governor will sign the bill, if only because of the pressure put on him," he said.

John Tupps, a spokesman for Scott, said the governor will sign the bill by April 12.

The Legislature rushed to act after an investigation into the Allied Veterans of the World charity led to charges of a $290 million illegal gambling business where most of the proceeds ended up in the owners' pockets. Law enforcement authorities last month arrested nearly 60 people affiliated with Allied and raided its Internet cafes statewide, closing seven in Volusia and Flagler counties.

Lt. Gov. Jennifer Carroll, a former consultant for Allied Veterans while a member of the Legislature, resigned in March after the results of the investigation were made public.

Sen. John Thrasher, R-St. Augustine and a sponsor of the bill, said that immediately after Scott's signature the law will require businesses or veterans organizations with gaming machines to discontinue their use.

"This bill is about machines. If they have machines that look and are programmed like slot machines they have to get rid of them," Thrasher said Friday. "They must act and look like slot machines to be illegal. . . . The intent is to stop illegal gambling."

Thrasher said enforcement will be in the hands of local state attorneys and sheriffs in Florida.

Gary Davidson, a spokesman for the Volusia County Sheriff's Office, said Friday that when the law goes into effect deputies will visit all Internet cafes under the agency's jurisdiction to ensure compliance. A one-time warning will be given businesses in violation that they "must shut down or face enforcement action."

"For any businesses that receive a warning from us, our deputies will then follow up the next day to ensure compliance," Davidson said. "If they're still not in compliance at that time, then our deputies will take the appropriate enforcement action."

Internet cafes had operated under a loophole in Florida law that allows companies like McDonald's or Coke to offer game promotions — sweepstakes — to entice customers. The online gaming parlors sold Internet time and offered sweepstakes through slot machinelike video games.

Trey Turner, general manager of the Sands Internet Cafe in Holly Hill, said Friday that everything pointed to Scott signing the bill into law very soon.

"We'll shut the doors and our software will automatically be shut off," he said. "We don't want to break any laws. We don't want to do anything illegal. We'll comply with the law."

Turner said the Sands Internet Café is owned by a "group of private South Carolina investors" who also own places in Ormond Beach and New Smyrna Beach and are not affiliated with Allied Veterans.

Internet cafes remain a popular destination for many people.

All 40 seats were taken Friday afternoon at Thunderbird Internet Café in Palm Coast and several other people were on a waiting list.

Maria Mattioli, the cafe's manager, said the business will stay open "until our legal team tells us to stop."

"I'm nervous because I could lose my job over this," she said. "This is my livelihood."

Michele Zimbler, commander of the DAV chapter in Holly Hill, said she was unsure Friday what will become of her arcade, as well as the only other DAV gaming room in Bradenton.

"We built that section of the building for an arcade," she said. "This is what (a lot of members) like to do."

Ginny Costello, 66, of Daytona Beach, said she often brings her mother to the DAV arcade to play and finds it hypocritical the state allows poker rooms, horse and dog racing and lotteries, but not a small military veteran-run gaming room in Holly Hill.

"It's all gambling. And we know the money here goes to help vets. It's a godsend," she said. "The only thing that keeps this post open is this. There should be a law that keeps them (politicians) from shutting it down, given all the good it does."

Editor's note: Military service information about Wilson Glass was incorrect in an earlier version of this story.

<p>Wilson Glass is a gambling man, but he knows a losing bet when he sees one. </p><p>That's why Glass, who served on the Korean Demilitarized Zone from 1959 to 1961, anticipates his time is very short playing electronic slot machines inside an arcade at the Disabled American Veterans chapter in Holly Hill. </p><p>Gov. Rick Scott is expected to sign a bill into law within the next few days that bans so-called Internet sweepstakes cafes, following the lead of the Legislature. The law also will impact local veterans posts like the one in Holly Hill where gaming machines help raise money to pay for volunteer programs that include driving ill veterans to doctor appointments. </p><p>"This is not a storefront cafe. A private club like this should be left alone if it's a legitimate thing," Glass said. "It's not all about gambling here. I might win or lose a little money. But even if I lose, it helps vets." </p><p>Still, Glass said he is realistic about the fate of the DAV arcade he visits a couple of times a week. </p><p>"I think the governor will sign the bill, if only because of the pressure put on him," he said. </p><p>John Tupps, a spokesman for Scott, said the governor will sign the bill by April 12. </p><p>The Legislature rushed to act after an investigation into the Allied Veterans of the World charity led to charges of a $290 million illegal gambling business where most of the proceeds ended up in the owners' pockets. Law enforcement authorities last month arrested nearly 60 people affiliated with Allied and raided its Internet cafes statewide, closing seven in Volusia and Flagler counties. </p><p>Lt. Gov. Jennifer Carroll, a former consultant for Allied Veterans while a member of the Legislature, resigned in March after the results of the investigation were made public. </p><p>Sen. John Thrasher, R-St. Augustine and a sponsor of the bill, said that immediately after Scott's signature the law will require businesses or veterans organizations with gaming machines to discontinue their use. </p><p>"This bill is about machines. If they have machines that look and are programmed like slot machines they have to get rid of them," Thrasher said Friday. "They must act and look like slot machines to be illegal. . . . The intent is to stop illegal gambling." </p><p>Thrasher said enforcement will be in the hands of local state attorneys and sheriffs in Florida. </p><p>Gary Davidson, a spokesman for the Volusia County Sheriff's Office, said Friday that when the law goes into effect deputies will visit all Internet cafes under the agency's jurisdiction to ensure compliance. A one-time warning will be given businesses in violation that they "must shut down or face enforcement action." </p><p>"For any businesses that receive a warning from us, our deputies will then follow up the next day to ensure compliance," Davidson said. "If they're still not in compliance at that time, then our deputies will take the appropriate enforcement action." </p><p>Internet cafes had operated under a loophole in Florida law that allows companies like McDonald's or Coke to offer game promotions &mdash; sweepstakes &mdash; to entice customers. The online gaming parlors sold Internet time and offered sweepstakes through slot machinelike video games. </p><p>Trey Turner, general manager of the Sands Internet Cafe in Holly Hill, said Friday that everything pointed to Scott signing the bill into law very soon. </p><p>"We'll shut the doors and our software will automatically be shut off," he said. "We don't want to break any laws. We don't want to do anything illegal. We'll comply with the law." </p><p>Turner said the Sands Internet Café is owned by a "group of private South Carolina investors" who also own places in Ormond Beach and New Smyrna Beach and are not affiliated with Allied Veterans. </p><p>Internet cafes remain a popular destination for many people. </p><p>All 40 seats were taken Friday afternoon at Thunderbird Internet Café in Palm Coast and several other people were on a waiting list. </p><p>Maria Mattioli, the cafe's manager, said the business will stay open "until our legal team tells us to stop." </p><p>"I'm nervous because I could lose my job over this," she said. "This is my livelihood." </p><p>Michele Zimbler, commander of the DAV chapter in Holly Hill, said she was unsure Friday what will become of her arcade, as well as the only other DAV gaming room in Bradenton. </p><p>"We built that section of the building for an arcade," she said. "This is what (a lot of members) like to do." </p><p>Ginny Costello, 66, of Daytona Beach, said she often brings her mother to the DAV arcade to play and finds it hypocritical the state allows poker rooms, horse and dog racing and lotteries, but not a small military veteran-run gaming room in Holly Hill. </p><p>"It's all gambling. And we know the money here goes to help vets. It's a godsend," she said. "The only thing that keeps this post open is this. There should be a law that keeps them (politicians) from shutting it down, given all the good it does."</p><p><i>Editor's note: Military service information about Wilson Glass was incorrect in an earlier version of this story. </i></p>